India’s factory output jumps to 4.9% in April

India’s industrial production grew 4.9 percent in April, as compared with 4.4 percent jump in March, data released by statistics office on Tuesday showed.

The factory output index growth rate moderated in March after consistently being above 7 percent between November and February. It expanded 6 percent a year ago.

Factory output measured by the index of industrial production (IIP) is the closest approximation for measuring economic activity in the country’s business landscape.

Manufacturing sector, which accounts for more than three-fourths of the entire index, came in at 5.2 percent in April as compared to 4.4 percent in March.

“Acceleration for few months followed by slackness in in IIP growth has become a feature of IIP growth over the past 2-3 years. This shows that growth in factory output is still patchy and the demand impulse across all the use based industries are yet to firm up on a sustained basis,” said Devendra Kumar Pant, Chief Economist at India Ratings.

Consumer durables output came in at 4.3 percent in April from 2.9 percent in March, while consumer non-durables grew 7 percent in April as compared with 10.9 percent a month ago.

Electricity production growth fell to 2.1 percent in April from 5.9 percent in March, while mining activity’s growth further accelerated at 5.1 percent from 2.8 in March.

“The overall IIP growth at broad based classification was led by manufacturing and mining and at use based it was driven by capital, infrastructure and non-durable goods. Despite base being low and select auto segments doing well the consumer durables sector growth is languishing,” Pant added.moneycontrol